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5. Tommy John Company has $12,500,000 to distribute as dividends. It has $1 par value...

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Accounting

5. Tommy John Company has $12,500,000 to distribute as dividends. It has $1 par value outstanding 20,000,000 and shares of 6% preferred stock with a par value of $100 per share 10,000,000. How would the dividends be distributed to each group of shareholders if the company has not paid a dividend for 2 years under the following assumptions:
a. Assume that the preferred stock is cumulative and fully participating.
b. Assume that the preferred stock is non-cumulate and fully participating
c. Assume that the preferred stock is cumulative and non-participating

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